Borrowers advised to address poor credit ratings

29/09/2009

Taking steps to improve a credit rating can put borrowers in a stronger negotiating deal when it comes to applying for personal loans or other personal finance products.

While the base rate of interest continues to be at an historic low, a significant proportion of UK consumers are still struggling to obtain the funding they need to get their finances straight, largely as a result of their poor credit histories.

In order to address this, the Telegraph's 'Pennypincher' column has advised borrowers to take several simple steps aimed at "rewriting the past".

For example, registering on an electoral role, closing old credit card accounts and making more than the minimum payments on active accounts can all go some way towards improving a credit rating.

In addition, by focusing searches for personal finance products such as loans rather than applying for any possible option, the number of credit searches next to a borrower's name will also be reduced, thereby boosting their overall rating.

This advice comes soon after the website Unbiased.co.uk warned that too many Britons are failing to take advantage of low interest rates and make overpayments on their borrowings.

Tags; Debt Management and Banking,

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